Yemen's Economy: Trade Overview
Economic Position
As of 2023, Yemen ranked 160th globally in total exports and 110th in total imports. Despite its economic challenges, the country remains an active participant in global trade, with exports and imports playing a crucial role in its economy.
Exports: Key products and markets
Yemen’s top exports include gold ($265M), scrap iron ($125M), mollusks ($76.5M), industrial fatty acids, oils, and alcohols ($59.6M), and non-fillet fresh fish ($57.9M). These exports highlight the country’s reliance on natural resources and raw materials, with gold being its most valuable export.
The United Arab Emirates (UAE), India, Saudi Arabia, Oman, and Malaysia are Yemen’s main export destinations. The strong trade ties with these nations suggest that Yemen's economy is closely linked to its regional partners, especially the UAE and Saudi Arabia.
Imports: Essential goods and trade partners
Yemen heavily depends on imports for essential commodities, including wheat ($560M), raw sugar ($479M), rice ($463M), raw iron bars ($456M), and concentrated milk ($325M). The high import volume of food staples indicates the country’s dependence on foreign agricultural products to sustain its population.
China is Yemen’s largest import partner ($2.68B), followed by the UAE, Saudi Arabia, Turkey, and India. This trade network underscores Yemen’s reliance on both regional and global suppliers for essential goods, reflecting its economic vulnerabilities and the importance of international trade partnerships.
Geographical Context
Yemen's strategic location along the southern tip of the Arabian Peninsula makes it an important player in maritime trade. It shares land borders with Oman and Saudi Arabia and has coastal access to Djibouti, Eritrea, and Somalia, making it a vital transit point for shipping routes through the Bab el Mandeb Strait—a crucial link between the Red Sea and the Gulf of Aden.
Conclusion
Yemen’s economy is characterized by a reliance on raw material exports and significant imports of essential goods. Its trade relationships with neighboring Gulf countries and major global economies such as China and India play a vital role in sustaining its economic activity. However, the country’s dependence on imports for food and raw materials highlights the need for economic diversification and greater self-sufficiency in the long run.
Source: https://oec.world/
